1. Dawson O'Connor is the owner of Miller Island Sales, a distributor of fishing supplies. The following is the balance sheet of the company as of December 31, 2018:

   Cash	$2,300		Accounts payable	$6,400
   Accounts receivable	10,400		Salaries payable	1,200
   Inventory	12,500
   Equipment	8,000
   Less: Accumulated depreciation	(6,500)		D. O'Connor, capital	19,100
   	$26,700			$26,700

   Dawson keeps very few records and has asked you to help him prepare the 2019 financial statements for Miller Island Sales. An analysis of the 2019 cash transactions recorded in the company's checkbook indicates deposits and checks as follows:

   Total deposits: $173,200; all were collections from customers except for a long-term $10,000 bank loan.

   Checks written: $169,800 summarized as follows:

   Inventory	$123,100
   Salaries	4,250
   Rent	4,800
   Equipment	4,000
   Note payments (including interest of $650)	2,650
   Office expense	3,400
   Auto expense	4,100
   Withdrawals	23,500
   	$169,800

   Other information about the company is as follows:

   1. Accounts receivable at December 31, 2019, $9,200.
   2. Accounts payable at December 31:

      2018:	Inventory	$6,100		2019:	Inventory	$8,500
      	Office expense	300			Auto expense	200
      		$6,400				$8,700

   3. Salaries payable at December 31, 2019, $1,800.
   4. Equipment is depreciated by the straight-line method over a 10-year life. The equipment purchased in 2019 was acquired on July 1. All of the equipment will have zero salvage value at the end of its useful life.
   5. Interest payable at December 31, 2019, $140.
   6. The company uses a periodic inventory system. Inventory at December 31, 2019, $17,400.

   Required:

   1. Prepare a worksheet to summarize the transactions and adjustments of Miller Island Sales for 2019. Enter all amounts as positive numbers. (Hint: Include debit and credit columns for both transactions and adjustments.)

   Miller Island Sales
   Worksheet
   For the Year Ended December 31, 2019
   	12/31/18 Balance Debit	12/31/18 Balance Credit	Transactions Debit	Transactions Credit	Adjustments Debit	Adjustments Credit	Income Statement Debit	Income Statement Credit	Balance Sheet Debit	Balance Sheet Credit
   Cash
   Accounts receivable
   Inventory
   Equipment
   Accumulated depreciation
   Accounts payable
   Salaries payable
   D. O'Connor, Capital
   Sales
   Notes payable
   Purchases
   Salaries expense
   Rent expense
   D. O'Connor, Withdrawals
   Interest expense
   Office expense
   Auto expense
   Depreciation expense
   Interest payable
   Inventory (12/31/19)
   Net income

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   2. Prepare a income statement for 2019.

   MILLER ISLAND SALES
   Income Statement
   For the Year Ended December 31, 2019
   Equipment Note payments Office expense Sales Withdrawals		$
   Cost of goods sold
   Accounts payable Accounts receivable Auto expense D. O'Connor, capital Inventory, 1/1/2019	$
   Accumulated depreciation Equipment Office expense Purchases Salaries payable
   Accounts payable Accounts receivable Cost of goods available for sale Equipment Salaries expense	$
   Add: Inventory, 12/31/2019 Less: Accumulated depreciation Less: Inventory, 12/31/2019 Less: Note payments Less: Rent expense
   Cost of goods sold
   Gross profit		$
   Operating expenses
   Accumulated depreciation Accounts receivable Cash Salaries expense Salaries payable	$
   Accounts payable Accumulated depreciation Salaries payable Rent expense Rent revenue
   Equipment Inventory Note payments Office expense Salaries payable
   Accumulated depreciation Auto expense D. O'Connor, capital Inventory Salaries payable
   Accounts payable Cash Depreciation expense Purchases Sales
   Total operating expenses
   Income from operations		$
   Accounts receivable Cash Equipment Other item Withdrawals
   Accounts receivable Cash Equipment Interest expense Note payments
   Net income Net loss		$

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   Prepare a balance sheet as of December 31, 2019